Posted on 10 Dec 2024
The off-season for steel demand has arrived. Last week, China's electric arc furnace operating rate and capacity utilization rate both declined. The northern region began to enter a cold winter, affecting production and transportation progress. Some steel plants began to suspend production for maintenance.
As some steel companies are ready to accumulate their inventory for the winter, steel mills' scrap purchase prices have also increased to varying degrees. However, South China is still a relatively high-cost area, and regional differences exist.
At present, the profit situation of steel mills is still not very optimistic. The price stability of scrap steel is still stronger than rebars and wire rods. In the short term, the profits of electric arc furnace steel companies may be compressed.
Source:Yieh
